Starting your own venture in India? The Startup India initiative by the Government of India is your launchpad to success! From tax benefits to funding access and fast-track IP protection, this flagship scheme empowers innovative entrepreneurs and transforms India into a startup powerhouse.
âś… What is Startup India?
Launched in 2016 by the Government of India, Startup India promotes entrepreneurship, supports innovation, and generates employment by providing regulatory relief, tax exemptions, and financial assistance to eligible startups.
🔑 Startup India DPIIT Benefits
1. Income Tax Holiday for Startups (Section 80-IAC)
Eligible startups can claim a 100% income tax exemption on profits for any 3 consecutive years out of the first 10 years of incorporation.
Note: Startups must be incorporated between April 1, 2016, and March 31, 2022 (deadline expected to be extended).
2. Exemption on Investments Above Fair Market Value (FMV)
Investments made by angel investors, incubators, and funds not registered as venture capital funds above fair market value are exempt from tax, helping startups secure more funds.
3. Tax Exemption Under Section 54GB
Individuals/HUF selling residential property and investing proceeds in eligible startups get exemption from long-term capital gains tax if shares are held for 5 years.
4. Apply for Government Tenders
Startups can apply for government tenders without fulfilling the “prior experience/turnover” criteria applicable to other companies.
5. Angel Tax Exemption (Section 56(2)(VIIB))
No angel tax on funds raised from:
- Accredited investors
- Listed companies with net worth â‚ą100 crore+
- SEBI-registered AIFs (Category I or II)
6. Set-off of Carry Forward Losses Allowed (Section 79)
Companies can carry forward losses if shareholders maintain voting power for 7 years post-incorporation.
7. Simplified Regulatory Compliance
DPIIT-recognized startups enjoy:
- Self-certification under 9 labor and 3 environmental laws
- No inspections for up to 3–5 years unless credible complaints arise
8. Access to Funding (Startup India Fund of Funds)
Through the â‚ą10,000 crore Fund of Funds, startups secure early-stage and growth-stage capital via SEBI-registered Venture Capital funds.
9. 80% Rebate on Patent Filing
Faster Intellectual Property Rights (IPR) protection with:
- 80% rebate on patent filing fees
- 50% rebate on trademark filing
- Fast-track examination & expert IPR support
10. Exemption on Long-term Capital Gains (Section 54EE)
Eligible startups can claim exemption from long-term capital gains tax if gains are invested in a government-specified fund within 6 months. Investment capped at â‚ą50 lakhs, held for 3 years.
11. Networking & Mentorship
Access to Startup India hubs, incubators, accelerators, and connect with industry mentors, investors, and policymakers. Participate in national and international startup summits.
🎯 Startup India Eligibility Criteria (2025)
To avail benefits, your business must:
- Be registered as a Private Limited Company, LLP, or Partnership Firm
- Be recognized as a startup by DPIIT
- Be incorporated within the last 10 years
- Have a turnover below â‚ą100 crore per year
- Work towards innovation, development, or improvement of products/services
- Not formed by splitting or reconstructing an existing business
đź’Ľ How to Register a Startup in India
👉 Want to incorporate your startup today?
Lexwell Advisory is your one-stop solution, simplifying your startup journey — from company incorporation to DPIIT recognition, legal compliance, and beyond. Your startup deserves a partner that grows with you.
Our Services Include:
- ✅ Startup Incorporation Consulting – Private Ltd, LLP, Partnership
- ✅ DPIIT Recognition – Get certified & eligible for Startup India benefits
- ✅ Startup India Registration – End-to-end assistance
- âś… Legal Help – Agreements, Founders’ Agreement, NDAs, ESOPs
- ✅ Trademark & Fast-track Patent Registration – Protect your brand & ideas
- ✅ Funding & Pitch Deck Support – Investor-ready business profiles
- ✅ Ongoing Compliance Checklist – ROC filings, GST, ITR, accounting & more
📢 Build with Confidence, Launch with Lexwell
India is the third-largest startup ecosystem globally and growing exponentially. Whether building a tech startup, social impact venture, or consumer brand, the Startup India scheme is your key to success.
Lexwell Advisors help startups register, scale, and succeed—whether first-time founders or serial entrepreneurs.
👉 Launch your startup the right way with Lexwell — simplified, strategic, and startup-friendly.
— A Startup India Blog by Lexwell Advisors
For queries, contact us at: 9915999371
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